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    Nervous Newbie


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    Question New VAT FRS 16.5% - how to save 2%

    I am an IT contractor on 14.5% VAT FRS. I do not fall under limited cost business. So to avoid paying 2% extra tax to HMRC, what are my options except spending that 2% on stationary every quarter?

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    Godlike


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    Quote Originally Posted by gaumzi View Post
    I am an IT contractor on 14.5% VAT FRS. I do not fall under limited cost business. So to avoid paying 2% extra tax to HMRC, what are my options except spending that 2% on stationary every quarter?
    Get a grip. It was never your money to begin with; you are simply collecting it on behalf of HMRC.
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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    Faqqed Off

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    Quote Originally Posted by gaumzi View Post
    So to avoid paying 2% extra tax to HMRC, what are my options except spending that 2% on stationary every quarter?
    1) Leave FRS
    2) Deregister from VAT completely
    3) Close down your company and create a new one - you get 1% discount in your first year
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    Godlike


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    Quote Originally Posted by TheFaQQer View Post
    1) Leave FRS
    2) Deregister from VAT completely
    3) Close down your company and create a new one - you get 1% discount in your first year
    The greatest trick the devil ever pulled was convincing the world that he didn't exist

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    Super poster


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    Do a search.

  6. #6

    Nice But Dim

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    Quote Originally Posted by gaumzi View Post
    I am an IT contractor on 14.5% VAT FRS. I do not fall under limited cost business. So to avoid paying 2% extra tax to HMRC, what are my options except spending that 2% on stationary every quarter?
    This attitude is part of the reason the change came in to begin with. FRS never intended to be an income stream for your co. It was an allowance from HMRC for simplifying your VAT return and essentially making their lives easier. The fact that many businesses saw it as a means to make more money is what drove the changes. Complaining that you are losing money will not help, you are not. VAT is a tax on the end consumer that you collect on behalf of HMRC. The fact they they used to let you keep some of it was just a nice side effect.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

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    Quote Originally Posted by DaveB View Post
    FRS never intended to be an income stream for your co. It was an allowance from HMRC for simplifying your VAT return and essentially making their lives easier.
    It was an allowance to cover your input VAT without having to claim it explicitly. It still is under limited cost rules, just not a very good one.

  8. #8

    Lord of the Vectras

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    If you're happy to commit fraud you can use whatever FRS percentage you like.
    Will work inside IR35. Or for food.

  9. #9

    Contractor Among Contractors


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    Quote Originally Posted by gaumzi View Post
    I am an IT contractor on 14.5% VAT FRS. I do not WANT TO fall under limited cost business.
    FTFY

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    I live on CUK

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    Quote Originally Posted by LondonManc View Post
    Get a grip. It was never your money to begin with; you are simply collecting it on behalf of HMRC.
    Very controlled response.
    "You’re just a bad memory who doesn’t know when to go away" JR

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